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How many of you still balance your checkbook by hand every month? How many of you have so little money in your account, you have to balance it every month? How many of you have so much money in the bank, you don’t have to worry about balancing it?

Every month the bank sends you a statement that tells you how much money you had in their bank when the statement was printed. You assume that is correct. Then you add in the deposits that you made after that date, and you subtract any checks and withdrawals that were made on that date. And your final answer should match with your checkbook ledger. If it doesn’t, then you have to look for errors and make the changes, or corrections, that will make them mutually agree.

That’s what the word, ‘reconcile,’ means—to make changes, so that two things are in agreement.

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